Outlook for June 2017

Wow…this stock market is quite relentless in its climb. Just when you think that earnings and revenue have plateaued and cannot grow significantly, investors pile in more money and drive those valuations to a higher level. The markets have hit newer all-time highs last week and push the valuations to the nosebleed section.  

Outlook for June 2017

We are getting into the summer months now and the sell-in-May mantra doesnt really seem to apply anymore. As this relentless climb continues, I stay wary of the overall broad market. I saw an interesting stat recently that the big five tech companies (Apple, Amazon, Alphabet, Microsoft & Facebook) have added more in their market cap value than the rest of S&P 500 companies put together. That’s the reality these days. The whole market stands on the legs of these companies and that does not give me confidence one bit that when they falter, its not going to be mayhem all around.

However, I keep putting some of my funds at work in the index funds month after month, but as regular readers may have noticed, there are not too many Buys and Sells these days. Nothing really stands out as a great opportunity right now, so I also keep accumulating more cash in my brokerage accounts waiting for better opportunities.

Looking for some investment ideas? Be sure to check out the Top 2017 Investment Picks from the blogging community.

Our current portfolio looks like this:

As it stands, our portfolio diversification is as shown below.

What is your outlook for June 2017? What are your thoughts on the stocks mentioned here? Do you own them or are they on your watchlist? What do you think of the current market levels and buying here? Make sure to leave a comment below.

Disclosure: Our full list of holdings is available here.

12 thoughts on “Outlook for June 2017

  1. Thanks for the summary! I appreciate your outlook and always like to learn how others are dealing with the current investing climate.

    Thanks as well for showing your positions. I have AQN.TO and SBUX as well, both of which are relatively recent purchases for me and off to a good start (for now!) I also have exposure to the Canadian banks but I’m not thrilled with the way they’ve been acting to be honest.

    With regards to valuation: I don’t think stocks are cheap, but I think they are somewhat reasonable when you consider where interest rates are at. Interesting times, to say the least.

    • Those are two good companies to own, Jay. AQN seems to be delivering and climbing at a good pace. My first purchase was just under $10, and have been happy with the performance.

      Definitely interesting times. We’ll have to wait and see how things play out
      R2R

  2. Building up cash is one thing. DO you plan to put the cash to work via option? It allows to buy below the current market price. While waiting, you could earn some nice returns…

  3. Crazy market for sure Sabeel, but I’m glad to see you back among us. Hope the work travels went well. I am not seeing many big opportunities right now either. I did publish an update on our swing trade efforts for the first half of the year, today. Those swing trades are most of our activity….while we wait for long term opportunities. Novo Nordisk, our only long term buy this year, is up 25% in the two months since we bought it…..but I’m not seeing a whole lot else to like. Eventually the financial, energy, and healthcare sectors will have good opportunities…..but not yet. As for short opportunities…..how about Canadian housing and John Deere (DE)?!

    Global bond yields have been making me chuckle though, as have the talking heads on CNBC……who all claim the next recession is 3 years away. Fortunately, no one has a good record of forecasting recessions. I am reminded of Buffett’s sex analogy when it comes to bull markets 🙂

    Have a great week
    -Bryan

    • Investing with funds does give me a lot of piece of mind and let the market do what it does best. These days, its been busy at work, so saves me a lot of mental bandwidth by using index funds 🙂

      cheers
      R2R

  4. Just bought TGT as I think its undetvalued for now 🙂 Yes they have issues but so doe MCD KO and other great dividend payers, but they dont come at P/E near 10 like TGT but in stead are traded well above 20 🙂 And also nive dividend yield.

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